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EUROPEAN ECONOMICS PREVIEW: BANK OF ENGLAND MONETARY POLICY ANNOUNCEMENT DUE

The monetary policy announcement is due from the Bank of England on Thursday, headlining a busy day for the European economic news.

The central bank is expected to keep its interest rate unchanged at 0.10 percent and to maintain the size of quantitative easing at GBP 895 billion. The announcement is due at 7.00 am ET.

Other major economic reports due for the day are as follows

At 3.30 am ET, the Federal Statistical Office is scheduled to release Swiss producer prices for February. Prices had decreased 2.1 percent on year in January.

At 4.30 am ET, Italy's Istat publishes foreign trade data for January. Also, industrial production and producer prices are due from Poland. Poland's industrial output is forecast to grow 3.9 percent annually and producer prices to gain 1.3 percent on year in February.

In the meantime, Norges Bank announces its interest rate decision.

At 6.00 am ET, Eurostat publishes foreign trade data. The trade surplus is expected to fall to EUR 25.3 billion in January from EUR 29.2 billion in December. At 7.00 am ET, Turkey's central bank announces its interest rate decision. The bank is expected to raise its one-week repo rate to 18.00 percent from 17.00 percent.

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CHINA LEAVES BENCHMARK LENDING RATES UNCHANGED

China left its benchmark lending rates unchanged, as widely expected, on Monday. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April.

The inaction did not come as a surprise since the People's Bank of China had not adjusted the rate on its medium-term lending facility this month as it did ahead of the past three LPR moves, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said.

The scope for hiking rates this year is diminishing. The PBOC appears to favor quantitative controls on lending instead, they noted. Either way, credit conditions are set to be less favorable this year.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This new lending rate replaced the central bank's traditional benchmark lending rate in August 2019.

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NEW ZEALAND CREDIT CARD SPENDING DATA DUE ON TUESDAY

New Zealand will on Tuesday release February figures for credit card spending, highlighting a light day for Asia-Pacific economic activity. In January, card spending was down 10.6 percent on year.

Singapore will provide February numbers for consumer prices. In January, overall inflation was flat on month and up 0.2 percent on year, while core CPI fell an annual 0.2 percent.

Taiwan will see February figures for industrial production and retail sales; in January, they were up 18.81 percent and 3.56 percent, respectively.

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JAPAN MANUFACTURING PMI CLIMBS TO 52.0 IN FEBRUARY - JIBUN

The manufacturing sector in Japan continued to expand in March, and at a slightly faster pace, the latest survey from Jibun Bank showed on Wednesday with a manufacturing PMI score of 52.0.

That's up from 51.4 in February and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Output growth softened slightly, although new orders expanded at their fastest pace since October 2018. But job shedding persisted and sentiment eased to a nine-month low. Japan's services PMI came in at 46.5, up from 45.8 in February, while the composite index had a score of 48.3 - up from 48.2 in the previous month.

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HONG KONG TRADE DATA DUE ON THURSDAY

Hong Kong will on Thursday release February figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity.

In January, imports were up 37.7 percent on year and exports surged an annual 44 percent for a trade deficit of HKD25.2 billion.

Thailand will provide February numbers for industrial production, with forecasts suggesting an increase of 0.6 percent on year following the 2.8 percent contraction in January.

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SOUTH KOREA CONSUMER CONFIDENCE IMPROVES IN MARCH

South Korea's consumer confidence improved in March, survey results from Bank of Korea showed on Friday.

The consumer confidence index rose to 100.5 in March from 97.4 in February.

The indicator measuring current living standards rose two points to 89 in March and that concerning the outlook for living standards increased one points to 95.

Consumer sentiment related to future household income remained unchanged at 96 and future spending index grew three points to 107.

Consumer sentiment concerning current domestic conditions increased nine points to 72 and future domestic economic conditions rose three points to 93.

The expected inflation rate for the following year was 2.1 percent versus 2.0 percent a month ago.

The survey was conducted among 2,500 households between March 9 and 16.

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JAPAN HAS Y663.7 BILLION TRADE DEFICIT IN MARCH

Japan posted a merchandise trade surplus of 663.7 billion yen in March, the Ministry of Finance said on Monday.

That exceeded expectations for a surplus of 490.0 billion yen following the downwardly revised 215.9 billion yen surplus in February (originally 217.4 billion yen).

Exports jumped 16.1 percent on year to 7.378 trillion yen, beating forecasts for an increase 11.6 percent following the 4.5 percent decline in the previous month.

Imports gained an annual 5.7 percent to 6.714 trillion yen versus expectations for 4.7 percent following the 11.8 percent increase a month earlier.

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CHINA MAINTAINS BENCHMARK LENDING RATES

China kept its benchmark lending rates unchanged, as widely expected, on Tuesday.

The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points last April.

Markets have expected the rates to remain on hold today as the People's Bank of China had kept the rate on its medium-term lending facility unchanged early this month.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This new lending rate replaced the central bank's traditional benchmark lending rate in August 2019.

"Given that official efforts to rein in credit are being achieved by other means, we do not expect any changes to policy rates in the coming months," Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said.

With the economy doing well, policymakers are now focused on tackling financial risks, they noted.

Even in the absence of rate hikes, tighter credit conditions will become an increasing headwind to economic activity over the coming quarters, the economists added.

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EUROPEAN ECONOMICS PREVIEW: UK CONSUMER PRICE DATA DUE

Consumer and producer prices from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics publishes UK consumer and producer price data. Consumer price inflation is forecast to double to 0.8 percent in March from 0.4 percent in February. UK output price inflation is seen at 1.7 percent in March versus 0.9 percent in the previous month. At the same time, input price inflation is expected to climb to 4.4 percent from 2.6 percent.

At 4.00 am ET, industrial production, producer prices and corporate wage figures are due from Poland. Industrial production is forecast to jump 13.1 percent on year, following a 2.7 percent rise in February. Producer price inflation is expected to advance to 3.5 percent from 2 percent.

At 4.30 am ET, the ONS is set to release UK house price data.

At 6.30 am ET, Bank of England Governor Andrew Bailey gives a keynote speech at a virtual event.

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EUROPEAN ECONOMICS PREVIEW: ECB MONETARY POLICY DECISION DUE

The monetary policy announcement from the European Central Bank is due on Thursday, headlining a light day for the European economic news.

The bank is expected to keep its policy rates and stimulus package unchanged at the rate-setting meeting of the year. The announcement is due at 7.45 am ET.

ECB President Christine Lagarde is set to hold the customary press conference at 8.30 am ET. At 2.45 am ET, the French statistical office Insee publishes business confidence survey results for April. The business confidence index is forecast to rise marginally to 99 from 98 in March.

At 3.00 am ET, consumer confidence survey data is due from Turkey.

At 4.00 am ET, Italy's Istat publishes industrial orders and turnover data for February. Sales had increased 2.5 percent on month in January.

At 6.00 am ET, the Confederation of British Industry releases Industrial Trends survey data. The order book balance is forecast to rise to 2 percent in April from -5 percent in March.

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MALAYSIA INFLATION RISES IN MARCH

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Malaysia's consumer prices increased in March, data from the Department of Statistics showed on Friday.

The consumer price index grew 1.7 percent year-on-year in March, following a 0.1 percent rise in February. Economists had expected a 1.4 percent rise.

The annual growth was largely driven by the rise in prices of transport by 9.8 percent. Prices for food and non-alcoholic beverages gained 1.5 percent.

Prices for miscellaneous goods and services increased 1.0 percent and alcoholic beverages and tobacco rose by 0.6 percent.

Prices for furnishings household equipment and routine household maintenance grew 0.9 percent. Prices for health, and recreation services and culture increased 0.5 percent, each.

On a monthly basis, consumer prices rose 0.3 percent in March.

The core inflation was 0.7 percent in March.

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JAPAN LEADING, COINCIDENT INDEX DATA DUE ON MONDAY

Japan will on Monday release final February figures for its leading and coincident indexes, highlighting a light day for Asia-Pacific economic activity. Their previous readings were 98.5 and 90.3, respectively.

Singapore will provide March numbers for industrial production, with forecasts suggesting an increase of 2.2 percent on month and 3.0 percent on year. That follows the 1.6 percent monthly increase and the 16.4 percent annual spike in February.

Finally, the markets in New Zealand are closed on Monday for ANZAC Day and will reopen on Tuesday.

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EUROPEAN ECONOMICS PREVIEW: ITALY'S BUSINESS CONFIDENCE DATA DUE

Business and consumer confidence data from Italy is due on Tuesday, headlining a light day for the European economic news.

At 3.30 am ET, Sweden's central bank is set to announce its interest rate decision. The bank is expected to hold its key rate at zero percent.

In the meantime, producer prices, foreign trade and unemployment figures are due from Statistics Sweden.

At 4.00 am ET, Italy's Istat releases business and consumer confidence survey results. The business confidence index is forecast to rise to 102.5 in April from 101.2 in March. The consumer sentiment index is seen at 102.0 versus 100.9 a month ago.

At 6.00 am ET, the Confederation of British Industry releases UK Distributive Trades survey results. The retail sales balance is seen at -5 percent in April versus -45 percent in March.

At 8.00 am ET, Hungary's central bank rate decision is due. Economists expect the bank to hold its key rate at 0.60 percent.

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AUSTRALIA Q1 INFLATION +0.6% ON QUARTER, +1.1% ON YEAR

Consumer prices in Australia were up 0.6 percent on quarter in the first quarter of 2021, the Australian Bureau of Statistics said on Wednesday.

That was shy of expectations for 0.9 percent, which would have been unchanged from the three months prior.

On a yearly basis, inflation gained 1.1 percent - also missing forecasts for 1.4 percent but still up from 0.9 percent in the previous three months.

The Reserve Bank of Australia's trimmed mean was up 0.3 percent on quarter and 1.1 percent on year - slowing from 0.4 percent on quarter and 1.2 percent on year in the previous quarter.

The RBA's weighted mean rose 0.4 percent on quarter and 1.3 percent on year, slowing from 0.5 percent on quarter and 1.4 percent on year in the previous three months.

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NEW ZEALAND HAS NZ$33 MILLION TRADE SURPLUS IN MARCH

New Zealand posted a merchandise trade surplus of NZ$33 million in March, Statistics New Zealand said on Thursday.

That follows the upwardly revised NZ$201 million surplus in February (originally NZ$181 million).

Exports came in at NZ$5.68 billion, up from the upwardly revised NZ$4.5 billion in the previous month (originally NZ$4.47 billion).

Imports were worth NZ$5.65 billion in March, up from the upwardly revised NZ$4.3 billion a month earlier (originally NZ$4.29 billion).

On a yearly basis, exports were down 2.3 percent and imports climbed 11.0 percent.

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AUSTRALIA PRIVATE SECTOR CREDIT RISES 0.4% ON MONTH IN MARCH

Private sector credit in Australia was up 0.4 percent on month in March, the Reserve Bank of Australia said on Friday - after gaining 0.2 percent in February.

On a yearly basis, private sector credit climbed 1.0 percent after rising 1.6 percent in the previous month.

Housing credit was up 0.5 percent on month and 4.1 percent on year, while personal credit added 0.2 percent on month but tumbled 10.7 percent on year and business credit rose 0.3 percent on month and fell 2.6 percent on year.

Broad money was flat on month and jumped 9.6 percent on year.

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MYANMAR MANUFACTURING PMI IMPROVES TO 33.0 IN APRIL - MARKIT

The manufacturing sector in Myanmar continued to contract in April, albeit at a slower pace, the latest survey from Markit Economics revealed on Monday with a manufacturing PMI score of 33.0.

That's up from 27.5 in March and it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

All five of the PMI components had positive directional influences on the headline figure in April, but four (the exception being suppliers' delivery times) remained well inside negative territory. Output and new orders both fell at the fifth-fastest rates in the survey history, while stocks of purchases and employment contracted at the third- and fourth-quickest rates on record, respectively.

Although firms expect output to rise by April 2022 on balance, overall expectations were the weakest in over two years.

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AUSSIE APPRECIATES AFTER RBA DECISION

As expected, the Reserve Bank of Australia left benchmark lending rate and the 3-year Australian Government bond yield target unchanged at 10 basis points. Following the announcement, the aussie rose against its major rivals.

The aussie was trading at 84.62 against the yen, 1.5547 against the euro, 0.7743 against the greenback and 1.0782 against the kiwi around 12:35 am ET.

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HONG KONG PRIVATE SECTOR PMI EBBS IN APRIL - MARKIT

The private sector in Hong Kong continued to expand in April, albeit at a slower pace, the latest survey from Markit Economics showed on Wednesday with a services PMI score of 50.3.

That's down from 50.5 in March although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

A reduced level of COVID-19 case numbers and the loosening of restrictions contributed to improving business conditions at the start of the second quarter of the year.

Total new orders had fallen for the same length of time but stabilized during April. While the situation regarding the pandemic had shown signs of improvement, a number of firms continued to be negatively impacted, preventing more pronounced expansions in output and new orders.

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